For many families, incomes increase as
they age. The constancy of the cost of
homeownership means that a family that
experienced increased wages over the
period would progressively spend less of
their household earnings on housing-
related costs. In several areas of Marion
County, rents have accelerated even more
quickly than the average rent increase,
making an investment in homeownership in
these areas even better relative to renting
(Figure 9).
FIGURE 9. Marion County Rent Increases 2010-2014
Source: Census.gov
Value Maximization
A second important consideration that
becomes reflected in diminished supply of
affordable housing is the concept of value
maximization. Potential homebuyers value
a bundle of aspects and amenities that are
reflected in the home they choose to
purchase (e.g., location, proximity to
work/school/entertainment, neighborhood
safety, school systems, proximity to transit
or transportation, likelihood of
appreciation, square footage, number of
bedrooms, number of bathrooms, size of a
garage, and several other factors).
Individuals may value these things
differently relative to other individuals, and
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